Bush asks Saudis to increase oil production

[May 16, 2008]  RIYADH, Saudi Arabia (AP) -- President Bush, on a one-day visit to Saudi Arabia, is taking a second stab on Friday at getting the oil-rich nation to increase production and drive down soaring gasoline prices hurting U.S. consumers.

When Bush met with King Abdullah in mid-January, the president asked the oil-rich nation to raise production to ease high prices at the pump. Bush got a chilly response to his plea. The kingdom said it would increase production only when the market justified it, and that production levels appeared normal.

When Air Force One landed in the Saudi capital, the president got a red carpet welcome on the tarmac and was warmly greeted by Saudi leaders. Bush was spending the day with Abdullah at his horse farm outside Riyadh, talking mostly out of public view over three tea services and two meals.

The White House says the president's visit to Saudi Arabia is intended, in part, to celebrate 75 years of formal U.S.-Saudi relations. It will mark the conclusion of several agreements, laying out intentions to cooperate on nuclear energy, infrastructure protection and nonproliferation. But the rising price of oil undoubtedly will overshadow the talks.

Bush concedes that raising output is difficult because the demand for oil -- particularly from China and India -- is stretching supplies. Besides, any production hike might not lower prices that much as some economists say they're being driven up by increased demand, not slowed production.

Bush's visit to Saudi Arabia, which has the world's largest supply of oil, comes a day after Congress voted to temporarily halt daily shipments of 70,000 barrels of oil to the nation's emergency reserve. Bush has refused to stop pouring oil into the Strategic Petroleum Reserve, saying the stockpile was meant for emergencies and that halting the shipments would have little or no impact on gasoline or crude oil prices.

It's a move that Democrats have sought for the past year to increase supply and apply downward pressure on prices. With and eye to the November election, the Senate sent the measure to the president Wednesday night without a single GOP objection. The White House has indicated that Bush will sign the reserve measure.

Also, as Bush prepared to leave Washington, Senate Democrats introduced a resolution that would block $1.4 billion in arms sales to Saudi Arabia unless Riyadh agrees to increase its oil production by 1 million barrels per day. The Democrats said they introduced the measure to coincide with Bush's trip to send a message to Saudi Arabia that it should pump more oil to reduce the cost of gas for Americans.

[Associated Press; By JENNIFER LOVEN]

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